Should you buy shares these days?

Jason Donville was on BNN last week and his Top Picks were:

1. Directcash payment;
2. CGI group;
3. Valeant.

I don't think there's a lot of things to buy in the market these days. Directcash Payment is one of these things I wouldn't buy even if they had a big correction and even if they pay a high dividend. It's difficult to accept at first, when you begin at investing, but you never should put a lot of attention to dividends. First thing to watch is the ROE, then, the PE ratio, then, the growth in the last 5 years. With only these 3 indicators, you'll have a good idea about the quality and momentum of an investment. By the way, with these 3 indicators, you could determine that Directcash Payment is not a very good investment. I've had shares of Directcash Payment in the past and I've sold all of them. I'm not interested anymore in this company.

CGI group is a good defensive choice, but in the long run, I don't think that the price of the stock should rise as fuck. Of course, the company may buy another company (like they bought Logica a couple of years ago) in the next months, but I don't see a lot of growth in this industry (let's think about IBM for instance). So, if there's growth with CGI, it'll be growth by acquisition in an industry with modest growth. Anyway, the stock is cheap, at about 12 times next year earnings, so you don't take a lot of risks with this company. My personal feeling, based on nothing at all, is that, with CGI, you'll get a 10-12% annual return in the next 5-10 years. It's good, but not extraordinary.

Valeant is probably the best choice of the three because of the very agressive growth of the company. They recently abandoned their Allergan acquisition because Actavis offered more money. In my opinion, the price offered for Allergan was too high even before Actavis made an offer. So, it's not a bad thing to turn around and look somewhere else. I'm sure Valeant could be a 200$ stock in 2015 because they'll surely buy something big next year. For at least a year, they've been searching for a "merger of equals", which says a lot. Valeant has a lot of debt, but interests are low, so it's time to full the credit card and buy everything in sight. A lot of superinvestors are with Valeant. From what I've read, I don't see how Valeant couldn't have a market cap two times bigger in 1 or 2 years.

I think it would be a good idea to wait for a little pullback before buying anything in the market. Non-cyclical stocks aren't on sale. Cyclical stocks are on sale but they could be even more on sale in the next weeks. So, no need to hurry to buy anything at all.

Maybe it's mainly time to invest in Christmas gifts.